Multiple Choice
On January 1, 2017, Twinkle, Inc. purchased a machine for $160,000. Twinkle uses straight-line depreciation and estimates a seven-year useful life and a $6,000 salvage value. On December 31, 2023, Twinkle cannot locate a buyer for the used machine so it is scrapped.
In recording the machine retirement, Twinkle should reflect:
A) No gain or loss
B) A $6,000 gain
C) A $6,000 loss
D) A $154,000 loss
Correct Answer:
Verified
Correct Answer:
Verified
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